New Delhi, Nov 3 (PTI) India and Bahrain on Monday announced commencing negotiations for an ambitious trade deal and inching closer to sealing an investment pact as External Affairs Minister S Jaishankar held extensive talks with his Bahraini counterpart Abdullatif bin Rashid Alzayani to further broad-base overall ties.

In their talks, the two ministers also agreed to develop a common understanding to commence negotiations for a double taxation avoidance agreement (DTAA). This would help eliminate double taxation, provide tax certainty and promote trade and investment, officials said.

Alzayani landed in India on Sunday on a two-day visit with an aim to further expand bilateral ties in the areas of trade, investment and defence at a time West Asia has been witnessing conflicts and geopolitical turmoil.

In his opening remarks at the meeting, Jaishankar reiterated India's support for the Gaza peace plan and hoped that it would lead to a lasting and durable solution to the conflict in the region.

In their talks, Jaishankar and Alzayani explored ways to boost bilateral cooperation in areas of defence, security, economic, trade, investment, health, fintech, space, culture and people-to-people ties.

The two sides also resolved to work towards further growth and diversification of trade in areas such as electronics, petroleum, processed foods, base metals, and gems and jewellery, according to a joint statement released following the Jaishankar-Alzayani talks.

Bahrain is an important country for India in West Asia and the overall bilateral relations have witnessed a major upswing in the last few years with the two-way trade reaching USD 1.64 billion in 2024-25.

The Gulf nation has been home to close to 332,000 Indian nationals who comprise nearly a quarter of the total population of 1.5 million in that country. India is among the top five trading partners of Bahrain.

In the talks, both sides noted the progress made toward establishing the joint working group on trade and investment, as also on the commencement of negotiations on a Comprehensive Economic Partnership Agreement (CEPA) between the two countries, the statement said.

"These initiatives will further promote trade and investment between both countries," it said.

"Both sides welcomed the progress made in ongoing negotiations for a bilateral investment treaty." According to the joint statement, both sides also agreed to develop a common understanding to commence negotiations for a double taxation avoidance agreement (DTAA).

The Indian and the Bahraini sides also welcomed the role of Mumtalakat, the sovereign wealth fund of the Gulf nation, in enhancing bilateral investment cooperation.

"They recognised India's strong potential as a destination for future Mumtalakat investments, particularly in sectors such as FinTech, infrastructure and renewable energy which align with Mumtalakat's long-term strategic priorities," the joint statement noted.

It said the two sides expressed optimism for enhancing future collaboration in the areas of defence and security and cited the visit of three Indian naval ships to Bahrain last month.

"The two sides unequivocally condemned terrorism, in all its forms and manifestations and reaffirmed strong commitment to combat terrorism, including cross-border terrorism," the statement noted.

"Both sides strongly condemned the armed terror attack in Pahalgam on April 22, and expressed solidarity with the victims and the families. The two sides also committed to combat the threat of terrorism through enhanced bilateral and multilateral cooperation, including intelligence sharing, capacity building and cyber security," it said.

The statement said both sides acknowledged the visit of a high-level all-party parliamentary delegation from India to Bahrain on May 24 as part of India's diplomatic outreach in the aftermath of the Pahalgam attack. In his remarks at the meeting, Jaishankar noted the steady growth of bilateral trade and investments between the two countries.

"We welcome investors from Bahrain to come and explore investment opportunities in India. Conclusion of a Bilateral Investment Treaty, and the establishment of a Joint Working Group on Trade and Investment will further boost our economic ties," he said. PTI MPB RT

India and Bahrain commence negotiations for a comprehensive economic partnership, double taxation avoidance and bilateral investment treaty to boost trade. India and Bahrain have commenced negotiations for a Comprehensive Economic Partnership Agreement, agreed to develop a common understanding to begin talks on a Double Taxation Avoidance Agreement, and welcomed progress toward a bilateral investment treaty and a joint working group on trade and investment to promote trade diversification and sovereign wealth fund investment.